Blue Energy (ASX: BLU) has progressed environmental approvals and development planning at its Sapphire gas project during the December 2025 quarter as state and global policy settings continue to reinforce the role of gas in energy security.
The company continued environmental data acquisition work required under the Land Court-issued Environmental Authority for PL 1034 while advancing planning for a new appraisal well at the Sapphire block in Queensland.
Blue continued baseline groundwater and fauna surveys required to finalise amendments to the Environmental Authority for PL 1034, which covers the Sapphire block in the Bowen Basin.
Six pilot wells at Sapphire continue to flow gas, while the Sapphire 5 pilot well is awaiting downhole pump replacement, with planning underway for a new gas appraisal well at Sapphire as the company advances the project toward development readiness.
Moranbah Gas Supply
The Sapphire block sits immediately adjacent to the producing Moranbah gas project, creating opportunities to leverage existing infrastructure.
Blue Energy holds a non-binding memorandum of understanding to supply gas to Queensland Pacific Minerals Energy’s (QPME) proposed Townsville nickel refinery.
The companies have also executed a non-binding memorandum of understanding to supply pilot gas from Sapphire to Moranbah via a proposed pipeline connection to the Node 3 compressor station.
Following QPME’s acquisition of the Moranbah project, Blue Energy sees alignment to utilise Moranbah infrastructure to support potential gas supply and near-term commercialisation pathways for Sapphire.
Surat Basin PCA Applications
Blue Energy is awaiting Queensland government decisions on several Potential Commercial Area (PCA) applications over ATP 854 in the Surat Basin.
The applications cover contingent gas resources estimated at 398 petajoules located near the Wallumbilla gas hub and existing pipeline infrastructure.
PCA approval would accelerate the progression of the permit toward development and facilitate bringing new gas supply to market.
The resource sits within the core east coast gas supply corridor linking Wallumbilla and Gladstone.
Energy Policy And Market Context
Blue Energy said the Queensland Energy Roadmap confirms gas as a critical technology for electricity system reliability and firming as the generation mix evolves.
The roadmap forecasts growth in gas-fired generation capacity from the current 3.5 gigawatts to as much as 6.1 to 8.3 gigawatts by 2035.
The company also pointed to global energy policy discussions highlighting the need for dispatchable power to support industrial demand, data centres and artificial intelligence infrastructure.
Blue Energy said these trends reinforce the strategic importance of its gas portfolio in Queensland and the Northern Territory.
Northern Territory And Emerging Basins
Blue Energy’s work program across its Greater McArthur Basin tenements in the NT remains under suspension, with tenure extensions in place through mid February 2026.
The NT government has confirmed the company has met its statutory work obligations for EP 200 and EP 207.
Blue continues to pursue post farm-in arrangements to earn a 50 per cent interest in EP 200 and EP 205 following completion of initial work commitments.
Exploration expenditure during the quarter totalled $282,000, largely relating to Sapphire pilot well activities and tenure management.
The company ended the quarter with $4.97 million in cash and no debt.
